Alcoa Loss Deeper than Expected; Sales Top Forecasts

Tuesday, Apr 7, 2009  |  Updated 2:15 PM PDT
View Comments (
)
|
Email
|
Print

Alcoa reported a loss that was marginally worse than expected, but the company's sales came in slightly above expectations.

The aluminum fabricator cited a drop in demand for the loss—especially in the auto industry—and sharply lower prices.

Excluding one-time items, Alcoa reported a loss of 59 cents a share in the first quarter, against a profit of 44 cents a share in the same period last year.

Revenue for the most recent period fell to $4.1 billion from a topline of $7.375 billion this time a year ago.

Analysts who follow Alcoa, a component of the Dow Jones Industrial Average, expected the company to lose 56 cents a share on sales of $4.077 billion, according to a consensus estimate compiled by Thomson Reuters.

Despite the earnings miss, Alcoa shares (NYSE: aa) rose about 2 percent in late trading. The stock finished the regular New York Stock Exchange session 1.5 percent lower at $7.79.

The price of aluminum tumbled some 50 percent in the second half of 2008 from a peak of $3,380 per ton last July. During the first quarter, the price fell another 9 percent from $1,530 to $1,392. It stood at $1,460 on Tuesday.

For Investors:

  • Get After-Hours Alcoa Stock Quotes Here
  • Slideshow: 15 Companies at Greatest Risk of Default
  • Slideshow: 10 Most Affordable US Metro Areas
For more stories from CNBC, go to cnbc.com.

Get the latest headlines sent to your inbox!
View Comments (
)
|
Email
|
Print
Leave Comments
Bay Area Proud
Bay Area Proud is NBC Bay... Read more
Follow Us
Sign up to receive news and updates that matter to you.
Send Us Your Story Tips
Check Out